Hello everyone and welcome to another episode of the next generation people and profits podcast. You
guys I got a crazy fun episode for you today. But before we get into it, make sure you’ve gone over to
Facebook and you’ve liked ng cheer and gymnastics owners and you’ve checked out our website, nextgenowners.com for all of this amazing content that we have, as well as our custom coaching packages
that can help you grow your business. Alright, without any further ado let’s get right to it. Today we are
talking about how you can easily make 100k extra per year. So what would an extra $100,000 a year
mean to you and your business right like how much more could you pay yourself? How much more
could you pay your staff what amazing things could you do with that money if you had an extra
$100,000 a year? Now? We’re gonna get into some more details on what that looks like and how we do
that. But that’s what we’re talking about today. How are we bringing in those big extra dollars and how
we can really grow the profitability of our business. So the big three topics here are number one is
you’re fully in control of this. It’s your decisions and your own personal issues with money that are
preventing you from making an extra $100,000 a year. Not everyone’s business is ready to just
immediately overnight, start making $100,000 a year extra, but a lot of yours probably are and it is
possible to make substantially more in revenue right away by just following the steps that we’re going to
talk about. Number two is that there’s two methods to really doing this. One is to simply get more clients
and one is to charge more money. And those are going to be two that we’re going to break down.

And the third is you have to get past your hesitation and charge more money. So let’s get into
this where did this all come from? So as you all know we at next gen do business coaching and I was
doing a one on one coaching call with one of my favorite clients of our academy. And this was this last
week right after our academy retreat, where we started discussing some key metrics that we were
going to be measuring and using those key metrics to help us drive decisions in our business. And we
were discussing what her arm or average revenue monthly is. And so we were talking about this and
really what we were finding was that her arm was really, really low.

And it was actually essentially what I would call upside down. We were not making she was not making
as much as she should be per month from her clients. And we started talking about why it was and then
we got into some simple solutions to fix it. And really for her why was that she had and she literally
said you know my why my mission is I want to provide an amazing cheerleading experience while also not being cost prohibitive. I want to be able to offer something for those who don’t have all the money
and she is in what would be considered a high cost of living area.

Just outside Los Angeles and certainly could you know there are gyms charging, quadruple, you know,
just for a fitness membership, so she could do that, but her mission and her y was to make this
affordable for more kids and get more kids involved. In this sport and this thing that she so loved. And
so we were just discussing those some simple solutions to fixing her arm and bringing in
more revenue because that’s really what we were trying to do is we’re trying to achieve some really
specific revenue goals. And so I started really thinking about it more and spending some after we came
up with our game plan. And thinking about why people end up in this position and the reality is is that I
have been in that same exact position. And I’ve had those same hesitations and those same thoughts
that she had and I kind of wanted to get to it and I thought about structuring this episode a lot of
different ways. Episode not episode, I thought of structuring this a lot of different ways for you, but I feel
like this is the best one, you know, how can we add an extra 100k a year by making a couple quick
changes. So the number one topic is that we are in control of this right you are either you are either
doing this successfully or you’re doing it not successfully and a lot of cheer gym owners are not doing
this successfully. We’re not making our pricing based off of the right things. We are either focused on
matching our competitors pricing focused on oh well, well, they’re charging this much down the street
so then I can’t charge much more than that. Or I can only charge five or $10 more than that.

Or you’re putting your own personal feelings about money onto your clients. Now, that’s a weird
perspective. But we all have our own personal issues when it comes to money. Some of us spend it too
freely. A lot of us are are frugal and we are looking for deals and we were raised to be responsible with
that. Money. And so we’re putting our own personal feelings that people aren’t going to pay for certain
things, because it’s too much money. Now, let’s go back in time, where if we go back to pre 2005 If you
told anyone in 2005 that people were going to be willing to spend over $1,000 on a cell phone, they
would have laughed in your face, they would have said no way that’s impossible. That’s never going to
happen. Because at that point in time cell phones were you know $59 for that little Nokia that wasn’t
gonna occur. But now people are paying $1,000 $1,200 more for the same iPhone with a gold plate on
it versus a straight, normal black or silver so it’s all in the perspective and in how you value what it is
you do. You have to make your decisions on pricing without emotion. What does your business need?
What can the market bear and what is your long term goal? You need to like completely remove that lie
that gym owners shouldn’t make money from your mind. That is in my opinion, one of the worst things
we’ve done as an industry is we’ve created this idea that because we serve kids, that you shouldn’t
make money as a gym owner or if you do, you should make a reasonable living.

And there’s all sorts of people who will say, Oh, well, if you want to become wealthy being a
gym owner, that’s not the right choice. That’s not why anyone gets into being a gym owner is
to become wealthy. And maybe that’s true. Maybe that isn’t how we started. I didn’t start owning a gym
because I wanted to become wealthy. But I own a gym. And I’m a business owner and I’m an
entrepreneur and me being a gym owner is going to make me wealthy.

Right so I shifted my mindset away from the well I shouldn’t become wealthy off of my gym. Why should
I? Why? Because why is it that because I want to help kids and I want to impact their lives, that I then have to live some sort of a destitute lifestyle that I have to make less and you know if you’re a coach,
you have to have three roommates just so you can pay the bills, like why is it that you should have to
do that? Why is it that we shouldn’t be able to live in a quality home? Why is it that we shouldn’t be able
to go on vacations when we want to go on vacations, right like that doesn’t make sense. But we have
been so conditioned by the industry, for a lot of reasons, in my opinion, to believe that that is somehow
a bad thing.

But there are lots of people in the cheerleading and the gymnastics industries who are becoming very,
very wealthy. And right now it’s upside down right the gym owners are not getting as wealthy as they
should. And then the service providers at the top are becoming very wealthy. And that’s not
necessarily inverted, but it’s way more inverted than it should be. Right everyone should be able to
make a good living, not just like a decent living a good living doing cheerleading. So you’ve got to
remove that live from your mind and be okay with making money. Be okay with making good money,
not just like okay money, but like why shouldn’t Why should you be lower middle class just because you
own a gym?

You should be upper middle to enter that wealthy category where you’re having to worry about okay,
I’m making $250,000 a year and I’m in a higher tax bracket. That’s where you need to be. That’s where
you should be.

So there are two primary ways to accomplish this right. Number one is to get more clients right now.
Getting more clients, it takes time. That’s not just going to happen overnight. It’s going to require a
financial investment on your behalf. You’re going to have to market you’re going to have to have a sales
team. You’re going to have to do trials and you’re going to have to invest into getting those clients
there. They’re not just going to magically materialize you’re not going to wake up tomorrow morning and
say you know what, I want 100 More class kids and then they all walk in the door. You’re going to have
to work for that. So it’s not going to be a a quick fix. Now you should always be looking to grow and you
should always be looking to add more clients but that is gonna take more time and so this is not how to
easily increase your revenue to $100,000 more a year. Alright, so the number two is you can charge
more money. Now that one is easy. You’re literally charging more money. That’s it. Now, it does
come with challenges.

But in most circumstances, you absolutely can’t do that for the services you’re already providing with no
need to really provide an ongoing reason or explanation for why it is that you’re increasing your
pricing. Think about all the other subscription services that you have when you subscribe to Netflix.
When I first subscribed it was you know, 999 I think. And now it’s gone up astronomically over the
years. And once they started streaming they haven’t really changed the service very much. In fact,
they’ve actually decreased a lot of the shows that I loved to watch are on Netflix anymore because
other companies started their own streaming services. So those are things you need to factor in. So
you don’t necessarily always need to provide a reason for why it is you’re raising your prices. And I
think that’s one of the things that we always default to. I’m raising their prices but I’m still just doing
classes or Well, I can articulate why I’m raising prices because minimum wage just went up or
because the cost of goods is more or you just raise your prices because you are raising your prices
annually or by annually and you’re doing that intentionally.

So as we look at those first two subjects, you have to get over yourself and start making the decision about what you charge on your emotion. And two, you have to believe that you’re worth a premium price. If you don’t do that and you don’t believe in your product enough to charge a premium price then you’re not going to be comfortable doing that. This doesn’t mean that you have to overcharge though, you’re not necessarily going to be gouging people and charging $300 a month for one hour a week. But you can be fairly priced and make more revenue. So you have to charge more.
So how do you make that extra 100k per year?

Well, I did the math on my business, right so and I think we’re correctly priced but we could definitely go
up a little bit. So let’s say we have about 350 active members in our gym right now at the
moment which will actually go up here shortly when high school start tumbling with us again, but we
have about 350 active members and because of that I need to increase our arm or active revenue
monthly by just $23 per person to get an additional $100,000 per year.

I mean is that really crazy like is $23 per person that astronomical and that crazy that you think you
would have a flood of people going out the door? In my opinion? No $23 A month extra would not lead
to a massive exodus of my clients. Now, am I going to raise my prices by $23 per person right now?
No, I actually just did a price increase. So we actually raised our prices by about $20 per person just
recently like this going into this year. So we actually just did a price jump. But that is how you could do it
right now. Now, you may not have 350 clients, you may be in a different ballpark, but that doesn’t mean
that the same methodology can’t work for you.

So this all came from a one on one coaching call. Right? The hardest part of this situation is the
removal of yourself and your biases and your emotions when you’re making these decisions. And that’s
really why time after time. Why I have seen for myself and why I’ve seen others not charging the right
amount of money is we’re making those decisions based off of our biases and based off of our emotions,
and really based off of the fact that we love these kids and we want to we don’t want to lose anyone
and so we think emotionally we think about well, if I raise my prices and I know that Suzy who I just love
to work with won’t be able to afford classes anymore. So I just can’t read raise prices because I don’t
want to lose Susie. Well, that’s not the right approach. You need to be raising prices based off what
your business needs and what’s going to support it for the best thing. We want to do the right thing all
the time. Well, this came from one on one coaching call because having a coach who can look at the
situation and unemotionally tell you why you need to make those adjustments and lay out the
mathematics of how that’s going to change your business. Really, really helps it helps frame it and
takes your emotional decision making out of the process.

So maybe $100,000 a year isn’t realistic for your current membership base. Maybe you only have 100
members and to increase $100,000 You would have to be raising your prices well over $50 per
member well that’s probably not reasonable. But that doesn’t mean that $50,000 a year isn’t
reasonable. And if you only have 100 members, adding an additional 50k in revenue per year is a big
jump. Right? And if you have a member base that is bigger, maybe $100,000 is too small, maybe you
could be increasing your revenue by $200,000 a year. So you have a number of different approaches
you can take with this. So yes, this is how to make $100,000 a year easily or an extra $100,000 A year easily. A little bit click Beatty sure maybe it is but you guys get where I’m going with this. It’s very easy
to increase your gross revenue. And if you increase your gross revenue without increasing your costs,
that really should very quickly turn into net revenue. Right? That should turn into something that you’re
netting within the business and you’re not adding more classes and paying more staff members, which
that does come with adding more clients. So leaving this podcast as we wrap up, I want you to
calculate your arm your average revenue monthly and then take your gross monthly revenue and divide that by your active monthly members. And then look at what is a reasonable price increase. Most people are going to want even blink at a $10 increase a month and up to $25 generally is not in my opinion going to lose you a ton of clients beyond that you're definitely more likely to see people start to leave and you might get a diminishing returns where yeah, you raise your prices by $75. But then you lost 50% of your client base. And so it kind of levels out and you don’t really
get that increase.

So figure out what a reasonable price rate is. And then set when you’re going to do it and raise your
prices. Do it. Do it this year. Whether it be at the end of the season headed into the next one but raise
your prices you guys, you can do it. Believe in yourselves don’t make that decision emotionally and
make that change for you and for your business.

All right, everyone, we’ve reached the end of our episode, I want to remind you to head over to ng
cheer and gymnastics owners like our Facebook group. If you’re a gym owner, head over to add nextgenowners.com Get subscribed to our site, get all of our blogs and all our other great information. If you’re looking for another great podcast to listen to. That’s all about share. Make sure you check out the let’s talk to your podcast featuring Jason Larkins. He brings on various guests and discuss all the current events that are going on and cheer. Great stuff. I listened to it every week. Make sure you do too. All right, everyone. Thank you for listening. Make sure to like, share and subscribe. And we will catch you on the next episode.